Golden Observation | Multiple Factors Suppress Bitcoin Popularity Where is the bottom of this round of correction?

The deep decline of Bitcoin and Ethereum has driven the decline of this round of encryption market and the spread of tension.

Jinse Finance data shows that on May 19, Bitcoin fell below the 40,000 USD mark, Ethereum fell below the 3,000 USD mark, and popular sectors such as NFT, platform coins, and algorithmic stable coins all fell by more than 10%, and the overall encryption market went down. The market sentiment index reads "extreme panic". At the same time, the digital currency sector fell and weakened, Nantian Information fell more than 4%, Chutian Dragon, Netac Technology, and New Cape followed suit.

It is worth mentioning that this round of bitcoin fell by nearly 30%. In addition, according to AssetDash data, the market value of Ethereum has dropped to the 20th place in the global asset class, currently about 361.6 billion US dollars, and the market value has fallen from a high point of nearly 130 billion US dollars, and it has now fallen below Bank of America. According to previous reports, the market value of Ethereum has risen to the 14th place in global assets, with a market value of approximately US$490.9 billion.

Golden Evening News | A list of important news on the evening of February 23: 12:00-21:30 Keywords: RelayPay, State Bank of India, Bitcoin Hot List

1. RelayPay provides digital currency withdrawal service;

2. State Bank of India joins Liink, JP Morgan’s blockchain-based payments network;

3. "What exactly is Bitcoin" is on the Douyin hot list;

4. The Office of the Attorney General of New York reached a settlement with Bitfinex and Tether;

5. Buffett of India: Indian regulators need to step in and ban Bitcoin;

6. The European Central Bank: Hopes to have veto power over the issuance of stablecoins such as Diem in the euro zone;

7. Sushi's new proposal proposes to use Raydium as a bridge to build SushiSwap on Solana and Serum;

8. Crypto custody platform Koine enters bankruptcy proceedings. [2021/2/23 17:44:59]

Jinse Finance mining data broadcast | BCH's network computing power rose by 3.50% today: Jinse Finance reported that according to the data of the spider mining pool:

The computing power of the entire ETH network is 176.387TH/s, the mining difficulty is 2219.64T, the current block height is 9938639, and the theoretical income is 0.00795365/100MH/day.

The computing power of the BTC network is 113.362EH/s, the mining difficulty is 15.96T, the current block height is 627511, and the theoretical income is 0.00001575/T/day.

The BSV network computing power is 1.488EH/s, the mining difficulty is 0.23T, the current block height is 632087, and the theoretical income is 0.00060464/T/day.

The BCH network computing power is 1.805EH/s, the mining difficulty is 0.26T, the current block height is 632267, and the theoretical income is 0.00049850/T/day. [2020/4/25]

The deep correction of Bitcoin and Ethereum triggered market panic. The top 10 currencies by market capitalization all showed declines to varying degrees.

Golden Noon News | January 25 at noon list of important developments: 7:00-12:00 Keywords: People's Court, ChainSafe, AT&T, United States

1. People's Court Daily: The outstanding problem faced by the judicial application of blockchain is the authenticity of the data resources on the chain itself;

2. Ripple CEO: Ripple may be listed in the next 12 months;

3. Members of the encryption community have mixed reactions to the news of Ripple's planned IPO;

4. ChainSafe released the Go language implementation Go-Schnorrkel for the Polkadot validator signature algorithm;

5. Dfinity launched LinkUp, an open social network based on its Internet Computer platform;

6. AT&T: Not Responsible for $1.8M Encryption Attack That Alleges Critical Vulnerabilities;

7. The H&R Block Tax Institute in the United States encourages its customers to actively submit encrypted tax returns;

8. The current quotation of BTC is 8318 US dollars, down 0.18% in 24 hours, and the current market value is 151.237 billion US dollars. [2020/1/25]

Golden Morning News | The People's Bank of China cuts the reserve ratio Bitfinex clarifies that it is not bankrupt: 1. The People's Bank of China cuts the reserve ratio, which can release about 750 billion yuan of additional funds.

2. The media questioned Bitfinex's insolvency, and Bitfinex clarified that the relationship with Noble Bank in Puerto Rico has no impact on its operations.

3. F2Pool: It is very wrong to say that "empty blocks" produced by mining pools will pose a threat to Ethereum.

4. Changpeng Zhao called on Nasdaq to open the door to institutional investment, and Justin Sun responded that he hopes to promote the development of the industry together with Binance.

5. South Korean National Police Agency report: There have been 158 encrypted wallet hacking incidents in South Korea in the past three years.

6. ECAF issued 2 arbitration orders to freeze 9 EOS accounts.

7. The Swedish central bank's -0.5% negative interest rate may cause people to transfer wealth to digital currency.

8. The petition to make XRP the official digital currency of the 2020 Olympics has over 8,200 signatures.

9. Scientist of IBM R&D Department: The Internet of Things makes Bitcoin's proof-of-work mechanism more efficient. [2018/10/8]

Bitcoin fell below $40,000 per coin intraday for the first time since February 8. Negative headlines over the past week have weighed on bitcoin sentiment. It can be seen from the market level that this round of decline comes from multiple factors.

The first is that after Musk showed a rebellious attitude towards Bitcoin on May 17, Bitcoin fell for 3 consecutive days. The Musk incident brought about some changes in the data on the chain, and some irrational panic disks sold off, mainly retail investors. In addition, the energy consumption of Bitcoin driven by Musk has also suppressed the popularity of Bitcoin to a certain extent. Recently, a member of the European Parliament and German politician SvenGiegold also called for a law to set a cap on the electricity consumed by Bitcoin mining. He claimed that Bitcoin’s carbon footprint hurts the German economy while increasing global greenhouse gas emissions. He added that controlling cryptocurrency mining should have been on the EU's agenda, saying regulation of the industry was "overdue."

On the 18th, the China Payment and Clearing Association, the Bank of China Association and the Mutual Finance Association jointly announced that financial institutions and payment institutions are not allowed to carry out business related to virtual currency.

On the 19th, some asset management companies began to warn against investing in cryptocurrencies, including UBS, Pimco, T. Rowe Price and Glenmede Investment Management. Among them, UBS said, "We expect that as cryptocurrencies become mainstream, there will be stricter policy and regulatory controls in the future." Nicholas Johnson, portfolio manager of Pacific Investment Management Corporation, questioned the use of Bitcoin to hedge against inflation. Additionally, Rob Sharps, President and Head of Investments at T. RowePrice, stated, "Cryptocurrencies have an impact on the entire capital market, and we are capital market specialists. Ultimately, the tasks we manage for clients are not well suited to investing in cryptocurrencies, and we recognize this A highly speculative field.

At the macro market level, in the near future, cryptocurrencies may be greatly affected by trends in the US stock market, bond market, and inflation levels. If the stock market enters an adjustment, bond prices fall, and inflation pressure increases, the cryptocurrency market will also enter a period of adjustment.

Multiple factors have led to increased nervousness among retail investors. Additionally, cryptocurrency exchanges saw a net Bitcoin inflow of 30,749.89 BTC on Monday, the largest single-day inflow since March 12, 2020, according to data provider Glassnode. This may indicate that retail traders want to liquidate their Bitcoin holdings in a falling market. Typically when investors want to liquidate their bitcoin holdings, they transfer their bitcoins to an exchange. Lex Moskovski, chief investment officer of Moskovski Capital, also tweeted that 22,917 bitcoins flowed into the exchange within an hour yesterday. This hourly inflow was only seen during the March 2020 crash.

Faced with this round of deep corrections, analyst Carter Worth predicted in an interview with CNBC Fast Money this week that Bitcoin will hit a low of $29,000, emphasizing that the current price of Bitcoin is a top support area, "If we fall by 55%, We'd be at the lower end of support." Statistically, a 55% drop from BTC's high would land right in the sub-$30,000 area. In addition, Pankaj Balani, CEO of Delta Exchange, also said: "Bitcoin has not bottomed out yet" and is expected to "go lower again."

Hong Hao, managing director and head of the research department of Bank of Communications International, said on Weibo that the Bitcoin price model chart shows that based on the stock-to-flow inventory/production ratio and the calculation of the halving event, look at the positions of the 200-day and 1450-day moving averages . It is estimated that this wave of selling will be at 35,000 first (this line has been drawn to 1,000,000, and the calculation of the model price so far is still very interesting).

Several technical analysts on Wall Street said that the worst sell-off in bitcoin since the cryptocurrency boom last year was set to intensify further. Rich Ross of Evercore ISI believes that Bitcoin will repeat the fate of other speculative assets and will fall back to the 200-day moving average, which is $40,000.

Other observers expect a pattern of "lower highs and lower lows" for bitcoin, saying Musk's unpredictable tweets will put off traditional investors. There is also speculation that gold is starting to attract money from bitcoin.

Galaxy Digital CEO Mike Novogratz said in an interview that he expects Bitcoin to remain at the $40,000 level and rise again after a period of consolidation. Novogratz claimed that he is seeing more and more institutions entering the Bitcoin space, adding that he is no longer a "Wall Street loner." In previous news, Mike Novogratz revealed that about 85% of his total assets are in cryptocurrencies.

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